Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>There are no constituent changes for the <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> in June but there are capping changes for the Select Sector indices and the Equal Weight Index.</li>
<li>The round-trip trade is US$17.4bn with a big chunk from the Equal Weight Index, <a href="https://www.smartkarma.com/entities/communication-services-select-sector-spdr-fund" target="_blank" data-smartkarma-citation="entities:27534:1" rel="noopener">Communication Services Select Sector SPDR Fund (XLC US)</a> and <a href="https://www.smartkarma.com/entities/energy-select-sector-spdr-fund" target="_blank" data-smartkarma-citation="entities:27537:1" rel="noopener">Energy Select Sector SPDR Fund (XLE US)</a>. </li>
<li>The largest flows are expected in <a href="https://www.smartkarma.com/entities/exxon-mobil-corp" target="_blank" data-smartkarma-citation="entities:811:1" rel="noopener">Exxon Mobil</a>, <a href="https://www.smartkarma.com/entities/alphabet-inc" target="_blank" data-smartkarma-citation="entities:33361:1" rel="noopener">Alphabet</a>, <a href="https://www.smartkarma.com/entities/chevron-corp" target="_blank" data-smartkarma-citation="entities:11091:1" rel="noopener">Chevron Corp</a>, <a href="https://www.smartkarma.com/entities/visa-inc-class-a-shares" target="_blank" data-smartkarma-citation="entities:8707:1" rel="noopener">Visa</a>, <a href="https://www.smartkarma.com/entities/blackstone-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone</a>, <a href="https://www.smartkarma.com/entities/live-nation-entertainment-inc" target="_blank" data-smartkarma-citation="entities:6893:1" rel="noopener">Live Nation Entertainment</a>, <a href="https://www.smartkarma.com/entities/meta-platforms-inc-class-a-facebook" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Meta</a>, <a href="https://www.smartkarma.com/entities/broadcom-inc" target="_blank" data-smartkarma-citation="entities:998:1" rel="noopener">Broadcom</a>, <a href="https://www.smartkarma.com/entities/tko-group-holdings-inc" target="_blank" data-smartkarma-citation="entities:40463:1" rel="noopener">TKO Group Holdings</a>, <a href="https://www.smartkarma.com/entities/dell-technologies-inc" target="_blank" data-smartkarma-citation="entities:32189:1" rel="noopener">Dell Technologies</a> and <a href="https://www.smartkarma.com/entities/omnicom-group" target="_blank" data-smartkarma-citation="entities:15775:1" rel="noopener">Omnicom Group</a>.</li>
</ul>


There are no constituent changes for the S&amp;P 500 INDEX (SPX INDEX) in June but there are capping changes for the Select Sector indices and the Equal Weight Index.
The round-trip trade is US$17.4bn with a big chunk from the Equal Weight Index, Communication Services Select Sector SPDR Fund (XLC US) and Energy Select Sector SPDR Fund (XLE US). 
The largest flows are expected in Exxon Mobil, Alphabet, Chevron Corp, Visa, Blackstone, Live Nation Entertainment, Meta, Broadcom, TKO Group Holdings, Dell Technologies and Omnicom Group.


Select Sector Indices and S&P Equal Weight Rebalance Preview: US$17bn Round-Trip Trade

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

Warner Bros Discovery  / Equity Bottom-Up

<ul><li>Warner Bros. Discovery's (WBD) Q1 2025 earnings call highlighted the company's strategic focus on quality content and global expansion across its varied media platforms, consisting of streaming, studios, and traditional networks.</li><li>The performance reflected notable aspects of growth but also certain challenges inherent in the media industry.</li><li>On the positive side, Warner Bros. Discovery made significant gains with its streaming service, advancing its subscriber base by over 5 million in the first quarter alone, bringing the yearly total to more than 22 million new subscribers.</li></ul>

Warner Bros. Discovery's (WBD) Q1 2025 earnings call highlighted the company's strategic focus on quality content and global expansion across its varied media platforms, consisting of streaming, studios, and traditional networks.The performance reflected notable aspects of growth but also certain challenges inherent in the media industry.On the positive side, Warner Bros. Discovery made significant gains with its streaming service, advancing its subscriber base by over 5 million in the first quarter alone, bringing the yearly total to more than 22 million new subscribers.

Warner Bros. Discovery: Optimized Content Production & Strategic Licensing to Strengthen Brand Presence Across Different Viewership Landscapes!

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>The Trump administration proposed a new 100% tariffs at movies produced outside the United States. Korean contents account for about 8-9% of total viewing hours on Netflix globally.</li>
<li>Top three listed film/drama production companies in Korea including Studio Dragon, CJ ENM, and ContentreeJoongAng are likely to be negatively impacted by the new major tariffs imposed by the U.S.</li>
<li>Economics of making a movie is much cheaper in South Korea versus the U.S. Producing a film in South Korea can cost 30–70% less than in the United States.</li>
</ul>


The Trump administration proposed a new 100% tariffs at movies produced outside the United States. Korean contents account for about 8-9% of total viewing hours on Netflix globally.
Top three listed film/drama production companies in Korea including Studio Dragon, CJ ENM, and ContentreeJoongAng are likely to be negatively impacted by the new major tariffs imposed by the U.S.
Economics of making a movie is much cheaper in South Korea versus the U.S. Producing a film in South Korea can cost 30–70% less than in the United States.


A 100% Tariffs on Films Produced Outside the U.S. - Negative on Korean Film Production Companies

<ul><li>Warner Bros. Discovery concluded 2024 with significant progress in various strategic areas, positioning itself as a global media leader.</li><li>The direct-to-consumer (DTC) business showed notable expansion, ending the year with approximately 117 million subscribers across over 70 countries, up by 6.5 million in the fourth quarter alone.</li><li>This robust growth is underscored by the anticipation of expanding into key markets like the U.K., Italy, Germany, and Australia.</li></ul>

Warner Bros. Discovery concluded 2024 with significant progress in various strategic areas, positioning itself as a global media leader.The direct-to-consumer (DTC) business showed notable expansion, ending the year with approximately 117 million subscribers across over 70 countries, up by 6.5 million in the fourth quarter alone.This robust growth is underscored by the anticipation of expanding into key markets like the U.K., Italy, Germany, and Australia.

Warner Bros. Discovery’s Future Hinges on THIS Streaming Move – Can It Survive?

<ul><li>Warner Bros. Discovery's third quarter results for 2024 present a mixed bag of both encouraging advancements and continuing challenges.</li><li>The company's direct-to-consumer segment, including the streaming platform Max, exhibited strong growth, with Max adding 13 million subscribers in the third quarter alone, bringing its global total to over 110 million subscribers.</li><li>This contributed to a 9% year-over-year increase in direct-to-consumer revenue, reaching $2.6 billion and an impressive 175% increase in EBITDA to $290 million.</li></ul>

Warner Bros. Discovery's third quarter results for 2024 present a mixed bag of both encouraging advancements and continuing challenges.The company's direct-to-consumer segment, including the streaming platform Max, exhibited strong growth, with Max adding 13 million subscribers in the third quarter alone, bringing its global total to over 110 million subscribers.This contributed to a 9% year-over-year increase in direct-to-consumer revenue, reaching $2.6 billion and an impressive 175% increase in EBITDA to $290 million.

Warner Bros. Discovery: Direct-to-Consumer (D2C) Expansion As A Pivotal Growth Lever! - Major Drivers

United States

Warner Bros. Discovery, Inc. operates as a media and entertainment company. The Company offers a complete portfolio of content, brands, and franchises across television, film, streaming, and gaming.

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Warner Bros Discovery (WBD US)

Select Sector Indices and S&P Equal Weight Rebalance Preview: US$17bn Round-Trip Trade

Capping changes for the Select Sector indices and Equal Weight Index will result in a round-trip trade of US$17.4bn. There are some stocks with...

Brian Freitas

Warner Bros. Discovery: Optimized Content Production & Strategic Licensing to Strengthen Brand Presence Across Different Viewership Landscapes!

Warner Bros. Discovery's (WBD) Q1 2025 earnings call highlighted the company's strategic focus on quality content and global expansion across its...

Baptista Research

A 100% Tariffs on Films Produced Outside the U.S. - Negative on Korean Film Production Companies

Top three listed film/drama production companies in Korea including Studio Dragon, CJ ENM, and ContentreeJoongAng are likely to be negatively...

Douglas Kim

Warner Bros. Discovery’s Future Hinges on THIS Streaming Move – Can It Survive?

Warner Bros. Discovery concluded 2024 with significant progress in various strategic areas, positioning itself as a global media leader. The...

Baptista Research

Warner Bros. Discovery: Direct-to-Consumer (D2C) Expansion As A Pivotal Growth Lever! - Major Drivers

Warner Bros. Discovery's third quarter results for 2024 present a mixed bag of both encouraging advancements and continuing challenges. The...

Baptista Research

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